U.S. sanctions Cartel of the Suns, led by Nicolás Maduro

The US Treasury Department has announced sanctions against the Cartel of the Suns, a Venezuelan criminal organization allegedly headed by President Nicolas Maduro. The measure is issued under Executive Order 13224, as amended, for providing financial, material or technological support to the Sinaloa Cartel, one of Mexico's most powerful drug trafficking organizations.

Implications of sanctions.

With this action, all assets and interests of the designated person that are in U.S. territory or in the possession of U.S. citizens or entities are blocked and must be reported to the Office of Foreign Assets Control (OFAC). In addition, any entity directly or indirectly controlled 50 % or more by sanctioned persons will also be blocked.OFAC regulations prohibit any transactions by U.S. citizens or companies, or within U.S. territory, involving goods or services related to blocked persons, except with prior authorization.

Risks and consequences

Any violation of these sanctions could result in civil or criminal penalties for both U.S. and foreign persons. Financial institutions that engage in transactions with designated persons may also face secondary sanctions, including severe restrictions on operating in the U.S. financial system, including a prohibition on making contributions or providing goods or services to or receiving goods or services from sanctioned persons.

The goal: behavioral change

The power of OFAC's sanctions lies not only in its ability to designate individuals or entities on the Specially Designated Nationals (SDN) list, but also in its willingness to remove those who demonstrate positive behavioral change. The ultimate goal of these sanctions is not to punish, but to promote a transformation in the actions of the actors involved.

Source: https://home.treasury.gov/news/press-releases/sb0207